The Nifty opened with upward gap at 23250. It found support at the 61.8% Fibonacci retracement level, placed at 23,189. However, the index remains below its 200-day moving average, a critical long-term indicator, currently at 23,837, signaling continued weakness. On shorter timeframes, the Relative Strength Index (RSI) is displaying positive divergence, hinting at a potential short-term bounce. Traders can use this temporary recovery as an opportunity to initiate short positions at higher levels. Support for the Nifty is positioned in the range of 23,200 to 23,000, while resistance is identified in the range of 23,550 to 23,800.
Sensex
The Sensex opened at 76,900 on Wednesday, 15th January 2025. On the weekly chart, the index has broken down from a bearish head and shoulders pattern, with the neckline positioned at 76,800. A decisive break and close below 76,200 could trigger further downside, with the index likely to move towards the 75,000–74,500 levels. On shorter timeframes, the RSI is showing positive divergence, suggesting a potential short-term bounce. Traders may consider using this bounce as an opportunity to initiate short positions at higher resistance levels. Support for the Sensex is positioned in the range of 76,200 to 75,500, while resistance is identified in the range of 77,000 to 77,700.
Sector
The Nifty Bank Index opened at 48,832 on Wednesday, 15th January 2025. On the daily chart, it found support at the 50% Fibonacci retracement level of 48,286, derived from the swing low of 42,105 to the swing high of 54,467. The momentum indicator on the daily chart is at 34, suggesting oversold conditions. On the weekly chart, the index has broken down from a bearish triple-top pattern, with the neckline at 47,700. The RSI on the weekly timeframe shows negative divergence, supporting a bearish outlook. This setup suggests a potential opportunity to take short positions at higher resistance levels. Support for the Nifty Bank Index is positioned in the range of 48,200 to 47,500, while resistance is identified in the range of 49,200 to 49,800.
